United States President Donald Trump’s economic agenda has delivered robust growth and strong ​investment but failed to reduce the trade ‌deficit, according to a study by the German Economic Institute IW seen by Reuters on Friday.

Here are ​some key points from the report:

• Trump’s tax ​cuts, tariffs and drive to revive domestic ⁠manufacturing had produced mixed results. Gross domestic ​product growth remained solid and AI-related investment was ​buoyant, but job creation lagged the prior administration and inflation remained above the Federal Reserve’s 2% target.
• The U.S. goods ​trade deficit reached $130 billion in August, exceeding ​its level two years earlier, despite sweeping import tariffs.
• Trade ‌patterns ⁠had shifted, however. The European Union’s share of the deficit fell to 7% from 20% in August 2024. China’s share of the trade deficit ​declined to ​14% from ⁠29%.
• Efforts to bring manufacturing back have so far fallen short. Foreign ​direct investment inflows fell 8.2% to $248 billion ​in ⁠2025, 18% below the 2015–2024 average.
• The U.S.-Israeli war against Iran is increasing already high public debt ⁠and ​pushing up interest rates, with ​creditors questioning whether the U.S. can sustain its outstanding debt ​of $40 trillion.